Open AccessDifference of Gain and Loss on Currency Translation and Conversion
Author(s) -
Thu Trang,
Nguyen Van Su
Publication year - 2021
Publication title -
journal la bisecoman
Language(s) - English
Resource type - Journals
eISSN - 2721-124X
pISSN - 2721-0987
DOI - 10.37899/journallabisecoman.v1i5.269
Subject(s) - currency , devaluation , foreign exchange risk , foreign exchange swap , liberian dollar , balance sheet , business , swap (finance) , economics , monetary economics , commerce , finance
This article discusses the advantages and disadvantages of translation and conversion of currency. Foreign currency translation is the process of reporting financial information from one currency to another. Foreign currency transactions take place on the spot, forward, or swap markets. Currencies bought or sold on the spot generally have to be delivered as soon as possible, that is, within 2 working days. Foreign currency translation is carried out to prepare joint financial reports. Translation is simply a change in monetary units, just as a balance sheet expressed in British pounds is restated into its US dollar equivalent. No physical exchange takes place, and no related transaction occurs as if a conversion were made.